Why is it that Agents in QLD ask 8.5% management fees whereas in NSW they are asking 6.5%. What is so hard about managing QLD property?
That said, what are people actually paying? Do you find agents are prepared to negotiate on the rate?
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This topic was modified 9 years, 6 months ago by
Vik.
Hiya
Are you comparing Bris and Syd or QLD v NSW?
I know Syd is reasonably low – which is a direct result of competition but other areas of NSW aren’t usually that low.
In any case – the difference of 2% (after tax) isn’t going to be too huge unless your properties are renting out for heaps.
Cheers
Jamie
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This reply was modified 9 years, 6 months ago by Jamie Moore.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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I guess I’m comparing Bris v Syd.
You can see it as 2% or you can see it as 23.5% depending on your point of view. Basically it is another weeks rent you loose.
In 1999, last time I had an IP (in Syd), they were only asking 5%, and there was no GST to put on top back then. What has happened that made the management of properties that much harder for them?Hi Vik,
Interesting questions :-Why is it that Agents in QLD ask 8.5% management fees whereas in NSW they are asking 6.5%.
I long thought it had more to do with the fact that MOST SYd properties rent for much more than Bris properties. And, since the same amount of work needs to be done by an agent, whether Syd or Bris, that 8.5% of average rent in Bris may STILL be less than 6.5% of Syd average rents. Since it didn’t apply to me (I was only investing in Bris) I didn’t spend too much time researching it further…..
What is so hard about managing QLD property?
Nothing (???) – see above.
That said, what are people actually paying?
Now you’re talking !! I have heard that Sydney continues to be quite expensive to rent. But I also recall a time – circa 2000 – when landlords in Sydney had to DROP their rents by $100 a week to get tenants, so it is swings and roundabouts. How are median Brisbane rents in comparison?
Do you find agents are prepared to negotiate on the rate?
I found this would happen when it made sense to the agent – e.g. you had a long standing with them, and a trouble-free rental property, and/or multiple properties with them. No-one likes to work for less pay, unless a benefit arrives (e.g. you get to KEEP your business rather than losing a landlord with an “easy rental property”.
And welcome aboard Vik :) I hope you find things to your liking and get to keep on sharing good value ideas with us,
Regards,
BennyThanks Benny.
I am buying properties at the moment so I haven’t got to the stage of actually haggling on the management rate yet.
One property in the deep southwest of Sydney in an area where median rents are about $450pw and there the agent is asking the 6.5% I mentioned.The other one is in Fortitude Valley and is let for $460pw. That’s where I am being quoted the 8.5%.
I know that some agents here in Sydney will take on management work pretty much anywhere across the city. So I assume that is why the % rate I Double Bay is probably the same as it is in Parramatta.
I also know people who set up their management arrangements about 5 years ago (Werrington – western Sydney) who have been paying 5% since the day they signed up.
I don’t know where you get the figure of 6.5% for Sydney……we only pay 5% to our agents (+0.5% gst).
I’ll be certain to shop around Dean. Two agents I spoke to so far in the Narellan area were asking 6.5%. As I said, I do know others with 5% arrangements that were put in place a couple of years ago so perhaps the agents all met at the pub and decided its time for a price hike. Given there has been some turn over in properties lately is probably the motivation for them.
I’m sure they drink more beer in Brisbane and so that would account for the higher rate.
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This topic was modified 9 years, 6 months ago by
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